OPEN

Alpine Industrial Park

BROWSE MORE DEALS
Sacramento, CA
Industrial
147,687 SF

This page has been personalized for you and contains confidential information.  Please do not share this webpage or link.  You can log in to your existing Cadre account to learn more about the investment.

Risk Profile

Value Add

Sponsor

Rising Realty Partners

Date Aquired

Feb 2022

Total Equity

$9mm

Speak with our Investor Relations Team at
(646)-494-7233
LOG IN TO LEARN MORE
$50,000 minimum investment
Certain data and information discussed below is sourced from third party sources. Please review the investment memorandum for specific sourcing information.

Summary

Alpine Industrial Park is an opportunity to invest in a curated asset sourced through the Cadre network that is underwritten and managed by an institutional sponsor, Rising Realty Partners. Rising Realty Partners is under contract to acquire Alpine Industrial Park for $22mm. A 6-building, 148k sf flex/light industrial park located in Sacramento, CA.

Key Investment Highlights

Attractive Location in a Supply-Constrained Market

Sacramento is one of the best performing and most desirable industrial markets in Northern California - positioned for significant growth over the next 6 years with CoStar projecting average annual rent growth of 4.1% between 2022 - 2027.1 Specifically the Power Inn submarket is one of the most coveted institutional submarkets within Sacramento.

Power Inn has enjoyed a remarkable stretch of rent growth. Industrial rents today are 93.2% higher than they were 10 years ago. This rent growth has occurred while also having a record low availability rate.2

Diverse Tenant Base with Near-Term Rent Growth Upside

The Project is currently 83% occupied to a diverse set of tenants. The tenant base has been highly stable with the current ownership experiencing 99% of rent collections during 2021.

There is the potential for significant upside during the hold period with 76% of the leases rolling. The current rent roll is on average 12% below assumed current market rents today. The assumed market rents are in line with recent leasing that the submarket has experienced.

The unit layouts are highly functional with low finishes that can accommodate a wide range of light industrial users

Institutional Sponsorship with Proven Track Record

Rising Realty Partners is a family-owned, Los-Angeles based, vertically-integrated real estate investment and operating platform specializing in creating world-class commercial properties.

With over 100 years of combined industry experience, their team has a unique understanding of the ins and outs of developing and managing all types of asset classes and sizes including office, retail, data center, residential, entertainment, medical, industrial.

Rising has developed and maintained strong relationships with some of the most well-known institutions and organizations in the industry including Colony Capital, Angelo Gordon, Bank of America, Credit Suisse, Brookfield, SunTrust, J.P. Morgan, and The University of California.See the investment memorandum for additional detail and sources.

See the investment memorandum for additional detail and sources.

High-Demand Industrial Market

Industrial real estate’s growing demand has largely been driven by a secular shift in retail towards e-commerce, which has grown at a 16.1% CAGR since 2010 yet still only represents 13.5% of total retail sales.3

  • Strong Market Fundamentals:4 Despite increased supply in 2020, Sacramento has had positive absorption for each year with 2021 being a record high. Demand is expected to continue to keep pace with supply which will enable market fundamentals to remain favorable.
  • Strong Submarket Fundamentals:5 The Power Inn submarket is extremely supply constrained, with absorption levels far outpacing new supply over the last decade. There are high-cost barriers of entry that have slowed any new builds.
  • Strong Secular Tailwinds: Industrial real estate, which handles the storage, distribution, and fulfillment of e-commerce and other goods, is a critical part of the supply chain. Industrial rent accounts for less than 5% of total supply chain costs, while transportation accounts for over 50%. This suggests further room for rents to grow, as e-commerce players such as Amazon increasingly pay for premium space in desirable locations in return for lower transportation costs and improved efficiencies.
  • Resilient Asset Class: While economic disruption from COVID-19 has continued to subdue returns across the hospitality and retail sectors, industrial real estate has been strengthened, registering 23.0% total annual return in 2021, more than three times the average real estate return.6

Business Plan

Alpine Industrial Park is currently 83% occupied by a diverse mix of tenants, with no single tenant occupying more than 10% of the total sf. The business plan entails proactively managing the rollover of existing tenants, marking rents to market rates, and aggressively pursuing early renewals from tenants expiring during our hold.

Photos

About the Opportunity

Who is Cadre’s operating partner?
What are the main risks to this investment?
How much equity are Cadre and the Sponsor each investing in the Asset?
What is the status of debt financing for the transaction?
When is closing?
Am I able to sell prior to the end of the hold period?

About the investment process

What is a curated deal?
How do distributions work?
What fees will I be paying to Cadre?
What happens if I commit and fund after Initial Close?
How is the deal structured?
What reports will I receive?

Alpine Industrial Park

Purchase Price

$22mm

Total Equity

$9mm

Underwritten Hold Period

3 years

Deal details
Speak with our Investor Relations Team at
(646)-494-7233
SCHEDULE A CALL

Browse more deals

LOG IN TO LEARN MORE